The Prime Minister of the Republic of Kosovo, Ramush Haradniaj, through a letter addressed to ambassadors and heads of liaison offices accredited in the Republic of Kosovo, regarding the establishment of a 100% tax rate for imported products originating from Serbia and Bosnia and Herzegovina, has listed concrete facts and arguments for the violation of CEFTA by Serbia and Bosnia and Herzegovina against Kosovo, reports Koha.net.
At the same time, he called on the international community to support compliance with international agreements.
In the letter, Prime Minister Haradinaj recalls:
On November 21, 2018, Kosovo imposed 100% customs duty on all goods imported from Serbia and Bosnia and Herzegovina. This decision was taken in accordance with Article 18 of the Central European Free Trade Agreement (CEFTA). The decision is a response to the ongoing destructive actions of Serbia and Bosnia and Herzegovina that seek to undermine Kosovo's sovereignty.
The Republic of Kosovo strongly believes that dialogue based on goodwill, mutual respect and good faith is the only way to build trust between states and peoples, promoting long-term peace, strengthening regional stability and increasing prosperity.
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Therefore, the Government of Kosovo is strongly committed to reaching a comprehensive long-term peace agreement with Serbia, which addresses all political, security, economic, commercial and cultural issues.
Kosovo has consistently and resolutely implemented and respected all its international obligations, including CEFTA and its SAA - and will continue to do so.
The Government of Kosovo calls on EU representatives, as mediators in the dialogue between Kosovo and Serbia, to force Serbia and Bosnia-Herzegovina to fulfill their commitments under CEFTA and other agreements.
Reasons for imposing customs duties
Article 18 of CEFTA allows its members to take any action necessary for "the protection of essential security interests or the implementation of international obligations or domestic policies". Serbia, supported by Bosnia and Herzegovina, continuously and actively tries to undermine the security, sovereignty, independence and territorial integrity of Kosovo. Its actions violate binding legal and political commitments, including the Brussels Agreement on Normalization of Relations. These actions threatened the essential security interests of the Republic of Kosovo.
Among the most recent, such actions are as follows:
· Serbia's campaign to pressure countries to revoke Kosovo's recognition.
· Serbia's successful attempt to sabotage Kosovo's INTERPOL membership bid, which was also supported by Bosnia and Herzegovina.
· Physical attacks, ignored by the Serbian law enforcement bodies, on the means of transport of Kosovo and the citizens of Kosovo, using the territory of the state of Serbia as a transit to other European countries.
· Arrests, threats and other criminal actions by Serb representatives against ethnic Serb members of the Kosovo Security Forces.
Violation of the agreement on participation in regional organizations and initiatives by denying official representatives of Kosovo (including members of parliament, ministers and senior representatives of the Government of Kosovo) the right to participate in events organized in Serbia and Bosnia and Herzegovina.
· Sports federations and Kosovar artists deprived of the right to participate in international competitions.
Free Trade Violations That Now Justify Tariffs
Serbia and Bosnia and Herzegovina have repeatedly violated CEFTA and have not reacted to the complaints brought by Kosovo. Kosovo has strictly adhered to the terms of CEFTA. However, the actions of Serbia and Bosnia and Herzegovina have made the creation of a legal free trade area futile. The most recent violations include:
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· Serbia has deliberately rejected the agreement on Integrated Border Management, while refusing to use EU-funded border facilities, causing a loss of 12 million euros in donor funding for Kosovo
· Serbia refuses to respect agreements on customs procedures, including those related to customs stamps. As a result, Serbian products are entering Kosovo without paying customs duties and VAT, depriving Kosovo of revenue and providing an anti-competitive advantage to Serbian products.
· Goods from Serbia and Bosnia and Herzegovina - especially food and construction materials - receive additional illegal state aid and are illegally smuggled into Kosovo, further disrupting the domestic market.
· Kosovar products do not have access to the Serbian and Bosnian market or face various non-tariff barriers. For example, the Serbian and Bosnian authorities:
o Abuse the sanitary and phytosanitary certification process by sampling every truck of the beverage manufacturer, as opposed to the standard practice of inspecting 3-5 trucks for every 100.
o They do not know the testing analyzes of Kosovar exporters.
o Refuse to grant licenses for specialized goods made in Kosovo, such as pharmaceutical products.
o Refuse to recognize the certificate of origin issued by the Kosovo authorities and demand a certificate of origin of the goods to be issued by a Serbian authority, in violation of Kosovo law, Serbian and Bosnian law and CEFTA.
· Serbia imposes transport barriers that block or seriously delay the import of goods to Kosovo from the EU. As a result, the volume of Serbian goods sold in Kosovo is disproportionately higher than Kosovar goods sold in Serbia, even when adjusted for production and market size.
· Kosovo trucks are not allowed to use Serbia as a transit in the EU market.
· Similarly, Bosnia and Herzegovina exports significant volumes to Kosovo, while imposing extreme non-tariff barriers on imports from Kosovo.
· Kosovar companies are not allowed to compete in public tenders in Serbia. On the other hand, there are more than 100 public offers that Serbian companies have won in Kosovo.
· Serbia has refused to implement the 2013 energy agreement, which was confirmed in 2015. As a result, the Kosovo government has suffered direct losses of over 30 million euros per year and Kosovo businesses have lost 300 million euros per year.
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In a letter, Haradinaj made a condition for Quint countries to remove the tax
conclusion
The Republic of Kosovo is committed to the principle of free trade. However, free trade requires mutual respect, genuine cooperation and reciprocity. The Republic of Kosovo for many years has demonstrated considerable patience in the face of ever-increasing hostility and provocation. The tariffs imposed on November 18 are the inevitable result of such actions.
